For stock investors, the trade war has been nothing but trouble. For bond investors, it’s been a dream.
Unable to stomach turbulence driven by the escalating conflict between China and the United States, and leery of a darkening outlook for the economy, investors have been pulling money out of the stock market and buying bonds, the traditional place to park cash during times of uncertainty.
“For a lot of clients, they feel like they’ve just been bouncing up and down, and stocks are not going much of anywhere,” said Michael Ball, president of Weatherstone Capital Management, an asset manager based in Denver. “That gets people on edge.”